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Government College University Lahore

Political Science Department

Thesis
China Pakistan Economic Corridor (CPEC), Climate change
and Policy Options for Pakistan.

Supervisor:
Mr. Muhammad Manzoor Elahi

Submitted By:
Kamran (2242-BH-PS-19)
Mian Rab Nawaz (1702-BH-PS-19)
Muhammad Raza (2205-BH-PS-19)
DECLARATION

We, Kamaran, (2242-bh-ps-19), Mian Rab Nawaz (1702-bh-ps-19), and Muhammad Raza-
(2205-bh-PS-19), students of B.A (Hons) in the Department of Political Science, Government
College University (GCU), Lahore, hereby declare that the matter printed in this dissertation
titled ― “CPEC, CLIMATE CHANGE AND POLCIY OPTIONS FOR PAKISTAN” is our
own work and has not been printed, published or submitted as research work thesis or
publication in any form in any university, research institute etc. in Pakistan or abroad.

Date: ________________ Signature of Deponents: ________________

________________

________________

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RESEARCH COMPLETION CERTIFICATE
It is certified that the research work contained in this research titled “CPEC, CLIMATE
CHANGE AND POLICY OPTIONS FOR PAKISTAN” has been carried out and completed
by Kamran,(2242-BH-PS-19), Mian Rab Nawaz, (1702-BH-PS-19), and Muhammad
Raza, (2205-BH-PS-19) under my supervision.

Date: ______________________

Supervisor: ____________________________

Mr. Muhammad Manzoor Elahi

Submitted Through

Dr. Fauzia Ghani Controller Examinations


Chairperson, GC University, Lahore
Department of Political Science
GC University, Lahore

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Acknowledgements
After Allah Almighty’s Kindness and Blessings, We acknowledge the permanent
support of our parents throughout this journey from taking admission into this
prestigious institute to doing our final research. They are responsible for whom we
are today and their support has been our backbone always. Our supervisor, Prof.
Muhammad Manzoor Elahi has always been kind enough to answer us whenever we
felt stuck and has helped us to polish our work in the best manner. He believed in us
and encouraged us to keep our work going. All the teachers of this department have
provided us with an atmosphere where we could foster our skills and be our best
version. At last thank to ourselves for not giving up and believing that we could do it
despite all the hurdles.

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Dedication

To the deprived workers around the world who toil the land and cultivate it for us
despite the wrath of capital and climate, you make us believe in the future of
humanity. To the unsung climate activists whose activism finds its ways in love, care
and in a belief of a bright future for a world hostage to the dictates of a few, you make
us believe that indeed there is light at the other end of this dark tunnel. To the climate
migrants who lost their lives in this forced journey, we remember you. To the unsung
heroes of hope who cling to it despite breathing the pessimistic air, this work is
dedicated you.

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ABSTRACT

Despite being one of the lowest emitters of Carbon, Pakistan finds itself locked in
various climate-induced disasters. The vulnerability of the country to climate-related
disasters has proved fatal for country`s economic, social and political growth. With
environmental degradation, economic downfall, agricultural destruction and serious
threats to human security, the country thrives on the brinks of climate punishments as
manifested by the 2022 monstrous floods that hit the country severely. Amidst the
climate-induced disasters, Pakistan is also host to one of the mega China-led global
connectivity project Belt and Road Initiative (BRI) under China Pakistan Economic
Corridor (CPEC). The mega energy and infrastructural project with an estimated
investment of USD 64$ Billion, CPEC has been hailed as a game-changer for regional
connectivity and global trade. Despite cementing energy and infrastructural security
of Pakistan, CPEC carries with it environmental concerns in the implementation and
execution of its energy and infrastructural projects in the country as the country is
already a climate change victim. This paper is an attempt to unveil the climate fallouts
of CPEC projects on Pakistan with a focus on its energy and infrastructural projects.
Through a detailed literature review, this paper examines the harmful impacts of
CPEC projects on the environment of Pakistan. In addition to that, this paper suggests
set of sustainable developmental policy recommendations. These set of policies
highlight the significance of including climate related concerns into CPEC projects.
Furthermore, the paper underscores the importance of climate adaptation and
mitigation for policy-makers whenever mega energy projects especially coal-based
energy projects are formulated and executed.

Key Terms: CPEC, Climate Change, Pakistan, Climate Adaptation and Mitigation,
Sustainable Development Goals (SDGs), Connectivity, Trade

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LIST OF ABBRIVATIONS

CPEC China Pakistan economic corridor

UN United nations

MoP&D Ministry of planning and development

GHGs Greenhouse gases

GDP Gross domestic product

OBOR One belt one Road

FDI Foreign direct investment

SDGs Sustainable development goals

NCCP National climate change policy

UNFCCC United nations framework convention on climate


change

CC Climate change

CO2 Carbon dioxide

CH4 Methane

IMF International monetary fund

SEZs Special economic zones

PPDB Punjab power development board

MG Mega watt

MT Million ton

OLMRT Orange line metro rapid transit

EIA Environment impact assessment

ITS Intelligent Transport system

GFC Green climate Fund

ESP Electrostatic precipitator

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FGD Flue gas de-sulfurization

NEQS National environment quality standards

RE Renewable energy

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TABLE OF CONTENT

CHAPTER 1: INTRODUCTION 01
1. Introduction 01
1.2 Research questions 06
1.3 Research objectives 06
1.4 Research methodology 07
1.5 Research Significance 07
Chapter 2: Theoretical framework and Literature review 09
Chapter 3: CPEC’s Energy Projects: an interplay of development
and climate change 19
3.1 An overview of CPEC’s projects 20
3.2 Completed, under completed, and under consideration projects 22
3.3 The climate effects of CPEC’s projects 25
3.4 Sahiwal coal power project 25
Chapter 4: Infrastructural development under CPEC: an analysis
of trade and climate concerns 28
4.1 An analysis of the transport and road projects under CPEC
completed, under completion and types 29
4.2 The socioeconomic impacts of CPEC’s infrastructural projects 30
4.3 Greenhouse gas emissions form infrastructural projects 32
4.4 Carbon footprints and resource consumption associated with construction and
operations 34
4.5 Impacts of CPEC infrastructural Projects on climate of Pakistan 35
4.6 Policy and governance of CPEC’s transport and road infrastructure 38
Chapter 5: The way forward: synthesizing development with
Environment 41
Recommendations and policy options 42
Conclusion 54
Bibliography 55

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CHAPTER 1: INTRODUCTION:

1. Introduction

Climate Change has proved fatal for Pakistan as it has severely impacted the country`s
water, food, and, energy security through various climate-related disasters. 1 The
vulnerability of Pakistan to climate change disasters is nothing less than a disaster as the
country remains one of the lowest emitters of Carbon. The country has been exposed to
various climate-induced disasters in its various stages. Hosting every possible type of
climate-induced disaster, the country finds itself crippled in its development plans.
Floods, droughts, heat strokes, avalanches, storms, glacial lake outbursts, and, landslides
have wreaked havoc in Pakistan with shortest possible respites. 2 Ranked 18 out of the 191
countries in 2019 by Inform Risk Index-a European climate disasters gauging agency- the
country was jolted by various climate-induced disasters gravely in recent years. The 2010
floods affected 20 million people gravely, and 1/5 th of Pakistan`s geographical area was
exposed to the havoc of the savage floods. 3 The monstrous floods of July and August
2022 shook Pakistan to the core, putting over a one-third of the country under the flooded
waters, affecting millions of livelihoods, and millions more finding the only way-out in
climate-induced displacement and migration. Antonio Guterres, the UN Chief, called the
damaging floods of 2022 in Pakistan as a “Monsoon on steroids”.4 The damages done by
the savage floods of 2022 have been the heaviest climate toll on any nation. Already in a
whirlpool of social and economic upheavals, the country found itself in more depressing
times after the heavy floods swept across the county. According to UNICEF, the 2022
floods affected more than 33 million people in Pakistan while more than 17000 people
were killed, and, more than 2.2 million houses were damaged or destroyed during the

1
GoP (2012b) National Climate Change Policy. Government of Pakistan (GoP). Change M. O. C
Islamabad., accessed June 16, 2023,. http://www.mocc.gov.pk/frmDetails.aspx.
2
Mukhtar R (2018) Review of national mu
lti-hazard early warning system plan of Pakistan in context with sendai framework for disaster risk
reduction. Procedia Eng 212:206–213
3
GoP (2012a) Annual flood report 2012. Government of Pakistan. Power M. O. W. A. Federal Flood
Commission, Islamabad, accessed June 17,2023, http://mowr.gov.pk/wp-content/uploads/2018/06/Annual-
Flood-Report-2012.pdf.
4
Fraser Simon, BBC News, https://www.bbc.com/news/world-asia-62722117

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floods.5 A report by the country`s Ministry of Planning, Development and Special
Initiatives (MoP&D) estimates the damage done by the savage floods of 2022 at around
PKR 3.2 trillion (US$14.9 billion) while the total loss, according to the same report, is
estimated at PKR 3.3 trillion (US$15.2 billion), and total needs at PKR 3.5 trillion
(US$16.3 billion).6 A report published by Financial Times, after the analysis of the
satellite data by various cartographers, was of the view that the floods of 2022 has
submerged one-third of Pakistan`s overall area under water. 7 Moreover, World Bank`s
social vulnerability ranking puts Pakistan at 37 out of 191 nations because of country`s
perceived high rates of multi-dimensional poverty. This Report, also, affirms that the
disaster risks have further aggravated country`s vulnerable natural systems and exposed
dwindling livelihoods to greater risk. 8 Having to battle the curse of poverty, the country
badly needs development in the shape of mega projects like China-Pakistan Economic
Corridor (CPEC) but finds its plans evaporating whenever struck with the climate-
induced disasters of heaviest magnitude like the floods of July and August 2022. World
Bank in its assessment of post-Disaster of 2022 floods in Pakistan affirms that the floods
have pushed as many as 9.1 million of people into poverty. 9 In the lieu of above data, it
becomes clear that Pakistan is the gruesome victim of Climate Change as numerous
climate-induced disasters have punished country`s economic growth targets, social plans
along with the estimated developmental plans. The country remains at the most
vulnerable receiving end of climate-induced disasters despite being of the lowest Carbon
emitting nations; emitting less than 1% of world`s GHGs emissions. 10 Despite its lowest
possible emissions, the country remains greatly vulnerable to climate change. In its
annual report for 2020, the Global Climate Risk Index- a German think tank on climate
5
UNICEF, Devastating floods in Pakistan, https://www.unicef.org/emergencies/devastating-floods-
pakistan-2022
6
Ministry of Planning, Development and Special Initiatives, Pakistan Floods 2022: Post-Disaster Needs
Assessment, https://www.pc.gov.pk/uploads/downloads/PDNA-2022.pdf
7
Financial Times, Climate graphic of the week: One-third of Pakistan submerged by flooding, satellite
data shows
,https://www.ft.com/content/116f34fc-b44d-487d-822b-d3f1926eaca2
8
World Bank, Pakistan-Vulnerability,
https://climateknowledgeportal.worldbank.org/country/pakistan/vulnerability
9
World Bank, Quantifying the poverty impact of the 2022 floods in Pakistan
,https://blogs.worldbank.org/developmenttalk/quantifying-poverty-impact-2022-floods-pakistan
10
Mohydin R (2019) Climate change does not need visas to cross borders, accessed 18 June,
2023, https://www.amnesty.org/en/latest/news/2019/06/pakistan-climate-change-does-not-need-visas-to-
cross-borders/.

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change- placed Pakistan on the fifth spot on the list of countries most vulnerable to
climate change.11 In addition to the socio-economic losses, the country also has to bear
the burden of heavy environmental degradation emanating from the climate-induced
disasters. The country`s Finance Ministry estimates that environmental degradation may
cost the country PKR 365 billion every year. 12 This is an unwanted expenditure as the
country is already mired in resource constraints. According to country`s Climate
Ministry, the country had spent 6.5% of its GDP on climate change during the Fiscal
Year 2022-23.13 This shows a dramatic rise in the country`s spending on climate-related
disasters as the country was spending around 0.00028% of its GDP on environmental
protection.14 As the country went on guard in its efforts, however small, to protect itself
from the extremities of climate change, a World Bank Report predicts that climate would
further spoil country`s developmental plans. The report published by World Bank in 2022
estimates that the climate change would hit 20% of the country`s GDP and calls for a
whopping $ 348 billion to stop climate-induced disasters in Pakistan. 15 “The total
investment needs for a comprehensive response to Pakistan’s climate and development
challenges, between 2023 and 2030, amount to around $348 billion, or 10.7% of
cumulative GDP for the same period,” states the report.

China-Pakistan Economic Corridor (CPEC) remains the ever biggest investment in the
history of the country. A flagship project of China`s vision of global connectivity i.e.,
One Belt One Road (OBOR), CPEC maintains the status of new “Silk Route” in
connecting the global trade routes between East and West. CPEC is considered a regional
geo-political and geo-economic game changer. The $ 62 billion worth projected corridor
aims to strengthen Pakistan`s economy by revolutionizing its energy infrastructure, and,
its transport, agriculture, and, tourism sectors. Moreover, Pakistan is expected to receive

11
Dawn, Pakistan 5th most vulnerable country to climate change, reveals Germanwatch report, accessed
June 20, 2023, https://www.dawn.com/news/1520402
12
Finance Division, Environment-Finance Division, accessed June 21, 2023,
https://www.finance.gov.pk/survey/chapters_14/16_Environment.pdf
13
Finance Division, Climate Change, accessed June 21, 2023,
https://www.finance.gov.pk/survey/chapters_18/16-Climate_change.pdf
14
Khan I (2016) , Environmental degradation costs Pakistan Rs1 billion a day. Today’s
Paper. https://www.thenews.com.pk/print/119575-Environmental-degradation-costs-Pakistan-Rs1-billion-
a-day. 13 May 2016
15
Shahbaz Rana, The Express Tribune, Climate change to hit 20% of GDP, November 11, 2022,
https://tribune.com.pk/story/2385768/climate-change-to-hit-20-of-gdp

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70% of its investment from CPEC as Foreign Direct Investment (FDI). 16 The CPEC`s
monetary value is greater than the foreign investments that had arrived in the country
since 1970.17 The major portion of investments under CPEC are energy and
infrastructural projects designed to overcome country`s power outages and lack of
connectivity. The major projects in energy and infrastructure have proved a boost for
country`s macro-indicators18 and these investments are expected to accelerate country`s
GDP to 7.5% by 2030.19 The Gwadar Port, energy and infrastructure development, and,
industrial development are four major long-term priorities of CPEC in Pakistan. 20This
huge developmental investment does come with climate liabilities, particularly; the coal-
based energy projects and infrastructural development under CPEC are more climates
risky.21

Pakistan is a signatory to the Sendai Framework for Disaster Risk Reduction 2015-30
under UN22, the Paris Agreement on Climate Change23, and, the sustainable development
goals (SDGs). Being a signatory of these agreements, Pakistan has exhibited itself as a
responsible state in the responses towards the global issue of climate change. Sustainable
Development Goals (SDGs) call upon all the participants to nourish an environment for
sustainable development under policy options coherent with climate change. Pakistan`s
climate policy which is National Climate Change Policy (NCCP) 2012 is also espouses to
integrate the development in Pakistan with the conservation of the environment. 24Under
International obligations, Pakistan is expected to reduce its Green House Gas (GHG)
16
Husain I, Arrfat Y (2018) CPEC and Pakistani economy: an appraisal. CPEC Center of Excellence,
Pakistan ministry of Planning, https://cpec.gov.pk/brain/public/uploads/documents/CPEC-and-Pakistani-
Economy_An-Appraisal.pdf
17
Ghani WI, Sharma R (2018) China-Pakistan Economic Corridor Agreement: impact on shareholders of
Pakistani Firms. Int J Econ Financ 10:148–158
18
Rishap Vats, (2016), China-Pakistan economic corridor: energy and power play. Research Intern,
Institute of Chinese Studies, New Delhi
19
Mirza FM, Fatima N, Ullah KJESR (2019) Impact of China-Pakistan economic corridor on Pakistan’s
future energy consumption and energy saving potential: evidence from sectoral time series analysis. Energy
Strategy Rev 25:34–46
20
GoP (2017a) Long term plan for for China-Pakistan economic corridor (2017–2030). Government of
Pakistan (GoP) Planning Commission. Ministry of Planning D. R., Islamabad. http://cpec.gov.pk/long-
term-plan-cpec. 10 Jun 2019
21
Kouser S, Subhan A, Abedullah (2020) Uncovering Pakistan’s environmental risks and remedies under
the China-Pakistan economic corridor. Environ Sci Pollut Res 27:4661–4663
22
UN (2015) Sendai framework for disaster risk reduction 2015–2030. A. A. & 2019, W. U. O. F. S. P. D.
O.
23
UNFCC (2015) Adoption of the Paris agreement. UN, D. C. & Framework Convention on Climate
Change. https://unfccc.int/resource/docs/2015/cop21/eng/10a01.pdf

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emissions by 20% until 2030 subject to international funding. This target of mitigation
becomes costly for a state like Pakistan without international assistance. In Pakistan`s
division of GHG emissions, industry is the major shareholder (50%), followed by
agriculture (39%), industrial processes (6%) and other activities (5%). 26 Since industry is
major contributor to Pakistan`s GHG emissions, the coal-powered industrialization under
CPEC would further complicate Pakistan`s international obligations.

Since the coal-based energy projects and infrastructural development under CPEC would
affect Pakistan`s vulnerable climate, therefore, this research seeks to suggest a climate
coherency in the developmental projects under CPEC by studying the projects and their
governance models. This research is an attempt to suggest Climate Change Adaptation
and Mitigation policies for CPEC energy projects and infrastructural development to
Pakistan`s policy makers under the country`s international climate obligations.
Furthermore, both sustainable development and climate change are interconnected. For
that purpose, it is necessary to examine the impacts of CPEC on climate change and
discern the policy options that accommodate economic development with the
environmental Conservancy. The research gap is the lake of extensive study that
particularly, describes the environmental impact of the CPEC and provides various policy
options for the Pakistan in the light of climate change challenges. The objective of this
research is to complete this gap by taking a comprehensive approach that accepts the
complex interplay between CPEC climate change and policy options for Pakistan.
Additionally, by following the descriptive analytical methodology this research will
analyze the available literature, policy documents, related to CPEC and climate change
and other relevant data. This research will describe various direct and indirect impacts of
CPEC projects on the environment and try to study the impacts of CPEC, on air quality,
on biodiversity, on glaciers and many other environment related factors. Moreover, it will

24
GoP (2012b), National Climate Change Policy. Government of Pakistan (GoP), 17 Sep 2019, Change M.
O. C., Islamabad. http://www.mocc.gov.pk/frmDetails.aspx.
25
GoP (2016) Pakistan’s Intended Nationally Determined Contribution (Pak-INDC), 17 Aug 2019,
Government of Pakistan (GoP). Change M. O. C.,
Islamabad. https://www4.unfccc.int/sites/submissions/INDC/Published%20Documents/Pakistan/1/Pak-
INDC.pdf.
26
GoP (2010) Task Force on Climate Change: final report. Commission
P. HTTP://WWW.MOCC.GOV.PK/MOCLC/USERFILES1/FILE/MOC/PUBLICATIONS%20ON
%20ENV%20AND%20CC/REPORTS/TFCC%20FINAL%20REPORT%2019%20FEB%202010.PDF.

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also explain the climate change vulnerabilities of Pakistan and their potential interaction
with CPEC. Likewise, this thesis will provide multiple policy options for Pakistan to
adopt and support sustainable development with the framework of CPEC. This research
will provide potential policies to mitigate greenhouse gas emissions, enhance green
infrastructure, and, promote climate resilient agriculture sector. The results of this
research will provide valuable insight for national policymakers and stakeholders in
CPEC. Most importantly, this research will contribute to the current ongoing efforts to
multiply the benefits of CPEC while addressing the potential climate change challenges.
Finally, it is crucial for Pakistan to integrate climate change concerns into the CPEC and
discern the suitable policy strategy is to ensure the sustainable prosperity and growth in
Pakistan.

1.2 Research Questions

1. What are the main environmental challenges faced by Pakistan?


2. What is the importance of CPEC for Pakistan’s economic development?
3. What are the impacts of CPEC on environment of Pakistan?
4. How does climate change negatively affect different sectors of Pakistan?
5. What policies can Pakistan adopt to mitigate the negative environmental effect of
CPEC?
6. How can bilateral cooperation between China and Pakistan be increased to address
climate change concerns?
7. What would be the potential benefits of integrating climate change mitigation
measure into CPEC projects?
8. What institutional regulation mechanisms are required to implement and monitor the
climate change policies within the framework of CPEC.

1.3 Research Objectives

The objectives of this research are to analyze the effects of climate-induced disasters on
Pakistan and delve into the climate change adaptation and mitigation efforts of Pakistan.
After establishing the important link of climate change and development, the paper
analyzes the projects under China-Pakistan Economic Corridor (CPEC) in Pakistan with

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energy projects in focus in the of their effects on climate. This research seeks to suggest
environmentally friendly policies to policy makers in the developmental projects of
CPEC so that the climate costs of CPEC projects are less on environment.

1.4 Research Methodology:

The methodology adopted in this research is descriptive analytical methodology. A wide


range of authentic primary and secondary literature has analyzed as a guidance to find out
the effects of CPEC projects especially of energy sector under CPEC on the climate of
Pakistan. All the existing authentic secondary literature on the interplay between climate
change and CPEC has been analyzed thoroughly. Additionally, literature on the effects of
climate change on Pakistan has been taken in due consideration while formulating the
possible effects of CPEC projects with the focus on the development in energy sector on
climate of Pakistan, region and the rest of the world. Moreover, primary sources such as
annual reports of Government of Pakistan on the progress of CPEC projects and annual
GDP reports have also have been analyzed. The primary reports of multinational
organizations i.e., World Bank, IMF etc. on the effects of climate change have been taken
in great consideration while suggesting environmental remedies for the projects of CPEC.
Furthermore, in policy options various models such Green Model of Industrialization
have been analyzed and incorporated in suggestion.

1.5 Research Significance

This research brings out an outline of policy options coherent with climate concerns to
the stakeholders of CPEC projects. After weighing the burden of climate disasters on
Pakistan, this paper seeks to point out options for climate-friendly development in
Pakistan under CPEC. In its significant analysis of various government reports, along
with comprehending responsible multinational organizations` observations and taking
other secondary sources on CPEC and Climate Change, this research tries to be alarm the
policy stake-holders over the pitfalls of a climate doom if the pointed-out options are not
heeded. Since, this paper in its essence tries to aid public policy-making in CPEC projects
with a focus on its energy projects, therefore the research undertaken upholds great
significance for the policy-makers of developmental projects in general and for the

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stakeholders of CPEC in particular. The research also tries to bring out regional response
(in CPEC; China and Pakistan are prime actors) in tackling climate change as a viable
option.

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CHAPTER 2: LITERATURE REVIEW
Climate change refers to the long-term changes in the various aspects of earth`s climate
system including the changing patterns of wind, temperature, precipitation, and, other
climatic variables. It encompasses the changes in average weather conditions extended
over a range of centuries. The Intergovernmental Panel on Climate Change (IPCC), an
authoritative scientific body on climate change, defines climate change as; "Climate
change refers to a change in the state of the climate that can be identified (e.g., by using
statistical tests) by changes in the mean and/or the variability of its properties and that
persists for an extended period, typically decades or longer. It refers to any change in
climate over time, whether due to natural variability or as a result of human activity" 27.
This definition takes on climate change as a natural and human-induced phenomenon but
today`s research significantly focuses on human-induced climate conditions. Moreover,
the United Nations Framework Convention on Climate Change (UNFCCC), an
international environmental treaty, defines climate change as; "[...] a change of climate
which is attributed directly or indirectly to human activity that alters the composition of
the global atmosphere and which is in addition to natural climate variability observed
over comparable time periods”.28 The definition of United Nations Framework
Convention on Climate Change (UNFCCC) illustrates climate change`s major variable
which is anthropogenic factor. The human-induced changes are greatly highlighted in the
definition of UNFCCC in addition to the natural factors. When we use fossil fuels like
oil, gas, and, coal to power our homes, offices, automobiles and industries; we release
CO2 with our activities in the atmosphere. When the sunlight comes out, some of the heat
gets trapped in the atmosphere and leads to an increase in the temperatures of the earth.
Therefore, it is also called “Greenhouse Effect”. Moreover, the world population has
tripled in the last 70 years and we are consuming more products from animals than ever.
This conspicuous consumption releases another pollutant called Methane (CH4). The
collusive release of Carbon Dioxide (CO2), Methane (CH4), and, Nitrous Oxide in the
atmosphere in an increased ratio gets trapped in the atmosphere and leads to rise of global
27
IPCC, 2014, AR5 Climate Change 2014: Mitigation of Climate Change,
https://www.ipcc.ch/report/ar5/wg3/
28
UNFCCC,1992, United Nations Framework Convention on Climate Change
https://unfccc.int/resource/docs/convkp/conveng.pdf

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warming causing the erratic weather patterns everywhere. The problem is not that the
earth is getting warmer but the problem is the earth is getting warmer at unprecedented
levels never witnessed before. According to a UN report on Climate Change, the earth
today is warmer by 1℃ than it was in 1800s. This rise, according to UN Report, is normal
and would remain normal if it remains till 1.5 ℃ till next century but the given the pace
of our Carbon Emissions, we might hit the 1.5 ℃ by 2030.29 This dramatic rise has
alarmed the normal systems of our climate. Therefore, we witness a rush of conferences
relating to our environment given the pace of the unmitigated harm, the sudden change in
climate would bring to us.

Although, climate change can occur naturally in the form of volcanic eruptions, changes
in solar radiation and other natural changes in the climate system of the earth but climate
change, in its essence, refers to the endangered climate system of the earth majorly due to
the activities of man such as; burning of fossil fuels. According to a World Bank Report,
it is long-term trend which differentiates climate change from other natural variation in
the weather.30The ongoing changes in the climate of the earth as evident in the erratic
weather patterns, melting of glaciers and polar caps, rising sea-levels, altered
precipitations levels, and, the more frequent and more extreme weather patterns, i.e.,
droughts, heat-waves, floods, storms, and, cyclones, according to scientists, are 95%
cause of human activities. The shifts in ecosystems and biodiversity and the negative
impacts of climate change on the socio-economic well-being of man are another side of
climate change. According a United Nations (UN) Report 31, human activities have been
the main drivers of climate change since 1800s. The report labels the dramatic changes in
the emission of Carbon dioxide (CO2) after the Industrial Revolution of Europe as the
main culprit which has endangered our climate. The man`s industrial production has
exponentially expanded in every subsequent decade after the Industrial Revolution of
1800s. The UN Report further enumerates the burning of fossil fuels like coal, gas, and,
oil as the major contributors for the disproportionate presence of Carbon dioxide in the
atmosphere. As majority of scientists approve climate change as a consequence of

29
Un.org, “What is Climate Change”, https://www.un.org/en/climatechange/what-is-climate-change
30
World Bank, “What is Climate Change”, https://climateknowledgeportal.worldbank.org/overview
31
UNEP, Climate Change 2023: Synthesis Report, March 20, 2023,
https://www.unep.org/resources/report/climate-change-2023-synthesis-report

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ruthless human activities showing a disregard for the environmental well-being of our
mother earth, a NASA report32 finds an unparalleled upshot in the emissions of Carbon
Dioxide (CO2), Methane and Nitrous Oxide after 1950s (as shown in Figure:01).This
upshot in burning of fossil fuels is more likely due to the arms race and the race for the
space that ensued in the Cold War after the World System found itself locked in a bitter
competition of bipolarity.

Figure 01: graph depicting the dramatic rise in the levels of CO2 after 1950

Source: NASA

Climate-induced disasters have proven catastrophic for the economies of the


developing world. According to an IMF report, poorest countries (as shown in figure: 02)
have faced the greater burnt of climate change and these countries need the financial help
of major economies of the world to adapt to climate resilience. 33 Among the developing
world, Pakistan remains the prime victim of climate change. The impacts of climate

32
NASA, understanding climate change, accessed June 23, 2023,https://www.jpl.nasa.gov/topics/climate-
change.
33
Kristalina Georgieva, Vitor Gaspar and Ceyla Pazarbasioglu, Poor and Vulnerable Countries Need
Support to Adapt to Climate Change, 23 March, 2023,https
://www.imf.org/en/Blogs/Articles/2022/03/23/blog032322-poor-and-vulnerable-countris-need-support-to-
adapt-to-climate-change

11
change on Pakistan are vast: the changing weather patterns, melting glaciers, rising
coasts, dried up lakes, severe droughts and forced migration. The unmitigated economic
costs of climate calamities have caused dangerous disruptions in Pakistan`s economic
trajectory as successive governments shifted their economic plans to accommodate the
pitfalls of climate disasters. A World Bank Report of 2022 estimates that the climate
change would reduce 20% of the country`s GDP and needs a whopping $ 348 billion to
adapt climate-induced disasters, this amount has to funded by the rich countries and
warns of greater underdevelopment in the country if the country is not assisted for
climate change adaptability.34

Notwithstanding the effects of climate disasters, Pakistan being home to more than 250
million people, still needs intense industrialization to feed its poor population. The
country needs development for the social uplifting of its population. World Bank in a
report charts out a plan for massive industrialization in Pakistan and asks for a better
34
Shahbaz Rana, The Express Tribune, Climate change to hit 20% of GDP, November 11, 2022,
https://tribune.com.pk/story/2385768/climate-change-to-hit-20-of-gdp

12
public-private partnership make industrialization in the country a reality. 35 CPEC, so far,
has proved vital in developing the energy infrastructure, transportation routes, roads and
other infrastructure and the development of Special Economic Zones (SEZs) for an
inclusive environment for economic growth of the country.36

In a paper published in Institute of Strategic Studies Islamabad titled, “Energy projects


under CPEC”, Junaid Ashraf has described all the energy projects under China-Pakistan
Energy Corridor (CPEC). He explains, in detail, the energy projects which include the
name and nature of project, its location, its province, its capacity, its estimated cost and
its supervising authority. According to this paper, there are seven coal-based energy
projects such as Port Qasim Electric Company coal fired, Sahiwal Coal-fired Power
Plant, and, Engro Thar Coal fired. Some of the coal powered plants even import their coal
for operation. Port Qasim Electric Company has the cost of 1980 million $ and a capacity
to produce an estimated 1320 Mega Watt (MW) of electricity. Secondly, we have
Sahiwal Coal-fired Power Plant which has the capacity to produce 1320 MW of
electricity. Its estimated cost is 16 million U.S. dollars and is supervised by Punjab power
Development Board (PPDB).Thirdly, the Engro Thar coal-fired power plant which has
the capacity of 1320 MW with an estimated 2000 million U.S. dollars and it is supervised
by the Thar Coal Energy Board (TCEB).Fourthly, the Gwadar Coal/LNG/Oil power
project with a cost of 600 million U.S. dollars and a capacity to produce 660 MW of
electricity is another giant project of CPEC in the list of its energy projects and the
supervision of this project is under Gwadar Port Authority (GDA). Moreover, he
mentions Hubco Coal Power Plant, Rahimyar Khan Power Plant and SSRL Mine Mouth
Power Plant including Quaid-e-Azam Solar Park, Sachal Wind Farm including other
projects. Moreover, he categorizes the energy projects on the basis of their energy-
generating types i.e. Coal, Wind, Hydro or Solar. 37 According to country`s Ministry of
Planning, Development and Special Initiatives, there are 14 completed energy projects of

35
World Bank, Revitalizing the industrial growth in Pakistan, accessed 25 June, 2023,
https://documents1.worldbank.org/curated/en/680081468286261431/pdf/Revitalizing-industrial-growth-in-
Pakistan-trade-infrastructure-and-environmental-performance.pdf
36
Institute of Strategic Studies Islamabad, Industrialization: CPEC`s New Horizon, July 01, 2019,
http://issi.org.pk/wp-content/uploads/Pivot-Magazine/Pivot_Magazine_July_2019.pdf
37
Junaid Ashraf, Young ISSI Professional, March, 09, 2017, ISS,
http://issi.org.pk/wp-content/uploads/2017/03/Final_IB_Junaid_dated_09-3-2017.pdf

13
CPEC as of now. The completed energy projects include solar-powered, hydro, winded
projects but majority of them are coal powered projects such as Port Qasim Electric
Company coal fired, Sahiwal Coal-fired Power Plant, and, Engro Thar Coal fired, Quaid-
e-Azam Solar Park and Hydro China Dawood Wind Farm, Gharo, Thatta. These
completed projects are fully operational and have a capacity to produce more than 8200
Mega Watt (MW). They also include a transmission line from Matiari to Lahore having
the capacity to evacuate 4000 MW of energy i.e., Matiari to Lahore ±660 KV HVDC
Transmission Line Project. While two energy projects of CPEC are under constructions
which include 884MW SukiKinari Hydropower Project, KP and 300MW Coal-Fired
Power Project at Gwadar and five more are under consideration to be initiated as energy
projects such as 1124MW Kohala Hydropower Project, AJK. 38 The 14 operational
projects of CPEC of which the majority is coal-powered energy projects do bill the
climate alarms in their operations.

While analyzing various projects under the umbrella of CPEC, Syed Saad Wasim and
Mohammad Kashif Siddiqi in their article titled “Analysis of CPEC projects and its effect
on construction sector of Pakistan” argue that CPEC is beneficial for both countries
Pakistan and India. Moreover, they emphasize that in the construction sector, China
would likely be the major beneficiary. Furthermore, they describe that CPEC has
provided multiple short- and long-term benefits for Pakistani citizens and various
business opportunities mainly it has contributed in job creation for Pakistan. There will
be 2, 00,000 jobs for Pakistanis in the initial phases of CPEC. Lastly, their main
argument is that Pakistani contractors are getting less benefit with CPEC construction
projects because most of the contracts are awarded to Chinese contractors and their
companies. The construction of the Orange Line Metro Rapid Transit (OLMRT) Lahore
was done by Chinese firms. They recommend that there must be equal opportunities for
Pakistani contractors.39 Moreover, ceding to the point that the CPEC even in its under
completion processes has brought a great boom in the construction sector of Pakistan but

38
Ministry of Planning, Development and Special Initiative, Energy Projects under CPEC, accessed June
20, 2023, http://cpec.gov.pk/energy
39
Syed Saad Wasim, Muhammad Kashif Siddiqi, IJSSH-International Journal of Social Sciences,
Humanities and Education, Volume 2, November 3, 2018,
http://www.ijsshe.com/index.php/ijsshe/article/view/87

14
Pakistan Cement and Steel industries have its major beneficiaries. Nevertheless, this
sudden boom in the construction sector has its environmental repercussions too.

Abdul Rauf in his article titled, “Environmental Impact Assessment of CPEC Projects
and Mitigation Strategies” argues that energy shortages in Pakistan had badly hindered
the socio-economic activities as well as had increased the suffering of common populace.
However, construction of many power projects under CPEC has considerably resolved
the issue of power shortages. Moreover, majority of them are coal-based power plants,
which include 1320 MW coal-fired power plant at Sahiwal, 300 MW coal-fired power
plants at Gwadar, 6000 MW at Thar Block-II and 1320 MW at Port Qasim. He is further
of the view that many people argue against the use of coal due to its unhealthy impacts on
health and environment. But the current statics suggest the fact that almost 40% of the
world is still using the coal for electricity generation and production. He defends the coal-
based production of electricity by citing the fact that all coal-based power generating
plants in CPEC strictly follow environmental measures and other management systems as
well as protection systems. Continuous emission Myers systems are applied to monitor
SOx NOx and CO2. Further, the power plants have their own waste treatment facility.
Most importantly, their power plants provide employment opportunities to the locals.
Above all these companies also have signed corporate social responsibility agreement.
Through this agreement, 200 million rupees are provided to the Punjab government
annually.40

In their study, Ammar Junaid Asghar, Amna Mahnoor Cheema, Muhammad Ibrahim Hameed,
and others titled “the critical junction between CPEC, Agriculture and Climate Change”,
argue that increased mechanization of agriculture can increase the risk of climate change.
However, CPEC, by using green technology, can mitigate the potential threats of climate
change. In this paper, they have evaluated the environmental sustainability of projects
under CPEC. Additionally, they argue that both governments’ i.e. China and Pakistan
under CPEC must initiate sustainable agriculture practices by training local farmers, by
introduction of eco-friendly agriculture mechanisms such as green technology as 43% of
40
Abdul Rauf, Environmental Impact Assessment of CPEC Projects and Mitigation Strategies, January
2020,
https://www.researchgate.net/publication/337316740_Environmental_Impact_Assessment_of_CPEC_Proje
cts_and_Mitigation_Strategies

15
rural population of Pakistan is employed and dependent on agriculture sector. In addition
to that, to improve the water security system, under CPEC, Chinese companies
introduced two water desalination plants in Gawadar, however, they are used for drinking
purpose, and, are not for irrigation. The CPEC authorities have taken various measures to
include the irrigation water provision which include the Chashma Right Bank Canal
project in KPK, a project having the ability to make 300000 acres of fertile land
cultivable whenever completed. They further, recommended that initiation of
reforestation and advanced water management efforts can contribute towards the
achievement of better and long-lasting environmental sustainability through CPEC. 41

In their study titled “sustaining low Carbon emission development: an energy efficient
transportation plan for CPEC”, the researchers have suggested an energy efficient
transportation plan for CPEC. For example, they have proposed the green information
and communication technologies (ICT). This model has the potential to curb the
greenhouse gases emission. In addition to that, they also recommend the intelligent
transportation system (ITS). This is an advanced wireless electronic and automated
technological transportation system. The ITS technologies have the potential to control
carbon emissions. They are the opinion that their energy efficient intelligent
transportation model is facilitating optimal route planning, awareness about the eco
driving attracting public transport and it improves the operating practices.42

In a research article, titled “the environmental impacts of the CPEC: a case study”,
Mehwish Qayyum Durrani and Muhammad Bashir Khan have described all the potential
adverse effects on the environment due to CPEC in Pakistan. They particularly raised the
concerns about the ecology and the natural habitats of northern areas. They believe that
huge transportation through northern areas will adversely affect the glaciers in Northern
areas of Pakistan. Moreover, they have suggested few measures to mitigate the adverse
impacts of CPEC on the environment of Pakistan. Firstly, they suggest the recycling,
resuming add reducing mechanism for all the food and other products. All the market
41
Ammar Junaid, Amna Mahnoor, Syed Qasim, The Critical Junction between CPEC, Agriculture and
Climate Change, June 2021, Centre for Chinese Legal studies, LUMS,
https://ccls.lums.edu.pk/sites/default/files/2023-01/the_critical_junction_between_cpec_agriculture_and_cli
mate_change.pdf
42
Asma Zubedi, Zeng Jianqui, Qasim Ali Arain, Ying Zhang, Journel of information Processing System,
A[ril 2018.

16
products should be recyclable and reusable. Furthermore, there should be specific waste
dumping sites, so that the environment is protected. Secondly, the governments of China
and Pakistan should initiate a policy of forestation in northern areas and in Balochistan
because most of the CPEC developments are going to take place in these regions. The
government should provide an Environmental Protection regulatory framework (EPRF).43

A research published in Pakistan Social Sciences Review takes on the effects of CPEC on
tourism in Pakistan. In “CPEC and Climate Change: in the mediation role of tourism &
development”, the authors have explained the role of CPEC on the growth of tourism.
Further, they have also described how tourism development is impacting or exacerbating
the climate change. By the same token, this study also explains the mediating role of
tourism industry on CPEC and climate change. Most importantly, for them, the
government of Pakistan should promote the development of sustainable tourism and
environment friendly tourism. And also the environment friendly tourism is the only
viable option.44

Erica Downs addresses two special concerns; the debt sustainability and the
environmental sustainability in CPEC energy projects. According to her research,
massive use of coal for power generation was based on the “pull” factor from Pakistan
and the “push” factor from China. Through CPEC coal power projects Pakistan worked
to diversify its power generation capacity to decrease power generation cost by using
domestic coal and to reduce power shortage. Furthermore, there is a contradiction
between coal power generation and Beijing’s promises on green development. However,
there is a gap between the China’s promise and ground reality. Moreover, this paper
explains that these loans from Chinese banks will increase the Pakistan’s debt. 45 Her
research also sheds light over the debt burdens that would hinder Pakistan`s
environmental sustainability goals. If there is any external economic shock then it would
create a sustainable devaluation of Pakistan's currency. Due to devaluation, it will

43
Mehwish Qayyum Durani, Muhammad Bashir Khan, National Defence University, Islamabad, Abasyn
Journal of Social Sciences-Volume II, Issue I, 2018.
44
Rehmat Karim, Faqeer Muhammad, Kifayatullah, Pakistan Social Sciences Review, September 2020,
Vol. 04.
45
Erica Downs, The China-Pakistan Economic Corridor Power Projects: insights into environmental and
debt sustainability, October, 2019, https://www.energypolicy.columbia.edu/sites/default/files/pictures/
China-Pakistan_CGEP_Report_100219-2.pdf

17
increase debt and also increase the danger of sovereign default. Further, the loans that
were given to project companies were in dollars. On the other hand, power projects
collect their revenue in domestic currency. (This threat applies to ENGRO THAR
BLOCK 2 Integrated coal mine and Power plant.) Additionally, for this project Pakistani
government provided sovereign guarantee in the amount of 700 million dollars to
Chinese Banks that are financing this project (1.5 billion dollars).

For Shahzad Kousar and Abdul Subhan the major environmental risk emanating from
CPEC is related to its coal-based energy power projects. The authors argue that coal
power projects are major contributors of CO2 which ultimately leads to the climate
change and global warming. Moreover, their second concern revolves around the
impending increase in the traffic emissions. They are of the view that massive level
movements of trucks on daily basis will generate 36.5 million tons of CO2. The third
concern they address in their research is the likely deforestation that would take place
from Kashghar to Gwadar to find out new avenues.46

46
Shahzad Kouser, Abdul Subhan, December 26, 2019, Springer-Verlag Gmbtt Germany,
https://link.springer.com/article/10.1007/s11356-019-07428-5

18
CHAPTER 3
CPEC's Energy Projects: Interplay of Development and Climate
Change:

In today's interconnected world, the prosperity of nations relies heavily on their ability to
engage in global exchange and trade. Collaborations between different countries play a
pivotal role in boosting a nation's financial growth. Every country tries to tap maximum
benefits out of the interconnected global markets. Similarly, Pakistan in its efforts to
quantify the maximum trade benefits has found a bane in its low energy infrastructure.
Notably, China's substantial direct investment of USD 62 billion in various CPEC
(China-Pakistan Economic Corridor) projects stands out as a significant contribution
towards modernizing Pakistan's outdated infrastructure47.

A visionary project known as the "Belt and Road Initiative" (BRI), encompassing the
"Silk Road Economic Belt and the 21st-century Maritime Silk Road," aims to connect
potential markets and gain access to resources, effectively becoming China's gateway
across Eurasia. Among the six land-based corridors of BRI, the China-Pakistan Economic
Corridor (CPEC) holds a unique position, situated solely within Pakistan 48. CPEC is
considered a flagship project and symbolizes a new era of connectivity and integration
for Pakistan. Its transformative impact extends beyond just economic growth, positively
influencing the well-being of the Pakistani people. The acceptance of the CPEC project is
closely tied to perceived benefits, including increased business opportunities and regional
development. Furthermore, research indicates that CPEC projects have led to changes in
local perspectives on quality of life, economic possibilities, and poverty reduction.

From China's perspective, CPEC offers numerous advantages, including alternative trade
and energy routes and easier access to the Middle East, Africa, and Europe. It becomes a
multifaceted project that accomplishes four crucial objectives: firstly, it provides China
with the most direct access to the 21st Century Maritime Silk Road in the Indian Ocean 49.
47
Khetran and Saeed, “The CPEC and China-Pak Relations: A case study of Balochistan”, Research gate,
no. 1 (2018): 07-11
48
Rashid Menhas, Shahid Mehmood, Papel Tanchangya, “Sustainable Development under Belt and Road
Initiative: A case-study of CPEC`s socio-economic impact on Pakistan”, Google Scholar, (2019): 04-09
49
Nadeem Akhtar, Hidayat Ullah Khan, Cornelius B.Pratt, “Exploring the determinants of CPEC and its
impacts on local communities”, Sage Publications (2021), 09-14

19
Secondly, it fosters the development, connection, and integration of regional economies
and markets. Thirdly, it secures Pakistan's significant role as a vital participant in the
BRI. Lastly, it serves as a secure economic corridor for China, particularly in the event of
conflicts in the South China Sea.

The collaboration between nations, exemplified by projects like CPEC, exemplifies the
importance of interconnectedness and cooperation in fostering economic growth and
prosperity on a global scale. Through such initiatives, countries can tap into their full
potential and create a path towards a brighter future for their people.

The importance of energy in the CPEC project is evident from the allocation of US$35
billion out of the total fund for energy projects. Pakistan had been grappling with an
electricity demand and generation gap of over 40 percent. The peak summer months
demanded around 24,000 MW of power, while the actual generation was less than 1,600
MW, leading to severe power cuts of 20 to 22 hours daily in some regions.

1. An overview of CPEC's Energy Projects:

The China-Pakistan Economic Corridor (CPEC) has been hailed as a game-changer for
Pakistan's economic development, promising a series of energy projects that would
address the country's chronic energy crisis. With Pakistan's energy demand growing
rapidly, the allure of massive investments in power generation and infrastructure was
difficult to resist. However, beneath the grand promises and enticing investment figures,
a more critical examination of CPEC's energy projects reveals a web of hidden costs,
environmental concerns, and geopolitical implications that cannot be ignored.

China’s Belt and Road Initiative (BRI) holds Pakistan as its central country. China aims
at investing over $46 billion in China-Pakistan Economic Corridor which aims at
developing industrial zones and building energy infrastructures. Although CPEC is an
aggregate of such mega projects but the major projects among them are of energy sector
where a whopping amount of $34 billion has been allocated for energy projects which
comprise of coal, hydro, solar and wind. The government of Pakistan claims to be
optimistic about CPEC’s energy projects, “Energy projects will serve as a backbone of

20
the energy strategy to overcome power crisis in Pakistan’ 50 The policy documents
published by Pakistani Government shows that the country possess “an enormous amount
of untapped coal reserves (around 186 billion tons)” due to which the government
envisions another important aspect which is “to improve the energy mix with a larger
share of coal, hydel and renewable energy sources” 51. The government aims at reducing
its dependence on imported fuel by increasing the domestic coal production from 4.5 to
60 million tons annually.

Undoubtedly, CPEC’s energy projects would zero out the energy crisis of Pakistan.
Michel Kugelman asserts that “imported petroleum products account for a whopping
90% of Pakistan’s fuel consumption”, thus the Economic Corridor would substantially
make cheaper energy mix better for Pakistan. But there is a darker side to it as coal-based
energy production severely impacts ecology. China has made a tremendous significance
concerning economic development but it had catastrophic impacts on environmental,
majorly due to the coal-based energy production.52

• Ambitious Mega Projects: CPEC's energy projects primarily focused on building


large-scale power plants, predominantly coal-fired and hydropower projects. These mega
projects were intended to boost Pakistan's energy capacity significantly and mitigate the
long-standing energy shortages. While the ambition was commendable, the emphasis on
fossil fuels raised questions about the environmental impact and sustainability of such
ventures.

• Geopolitical Implications: CPEC's energy projects were not merely about fulfilling
Pakistan's energy needs; they were part of China's broader Belt and Road Initiative (BRI)
strategy. The development of the Gwadar port and its associated energy infrastructure
had significant geopolitical implications, as it provided China with access to the Arabian
Sea and the strategic chokepoint of the Strait of Hormuz. This raised concerns among
neighboring countries and international observers about the potential militarization of
the region.
50
Pakistan Economic Survey, 2014-15, Government of Pakistan,
https://www.finance.gov.pk/survey/chapters_15/Highlights.pdf, 45
51
Ibid, 70
52
The River runs Black: the environmental challenge to China's future, 2nd edn. Cornell University Press,
Ithaca, 2012

21
While CPEC's energy projects promised a lifeline for Pakistan's energy crisis, they came
with a host of hidden costs and implications that could not be ignored. The environmental
damage caused by coal-fired power plants and large-scale dam construction, coupled with
the specter of debt trap diplomacy and lack of transparency, posed significant challenges
to Pakistan's sustainable development. The country must carefully assess the long-term
consequences of these projects while ensuring the equitable distribution of benefits and
addressing environmental and social concerns. To truly be a transformative force for
Pakistan, CPEC's energy ventures need to be critically reevaluated, and lessons must be
learned to avoid repeating the same mistakes in future ventures.

2. Completed, under completed & under consideration projects:

As this study has already shown the significance of the China-Pakistan Economic
Corridor (CPEC) that has emerged as a pivotal driver of economic growth and
infrastructure development in Pakistan, one of the core components of CPEC is the
establishment of energy projects aimed at addressing Pakistan's chronic energy deficit.
While these projects promise to boost economic growth and alleviate energy shortages,
they also raise concerns about their potential impact on climate change. This article
explores the completed, under-completed, and under-consideration energy projects under
CPEC, focusing on the interplay between development and climate change.

• Completed Energy Projects:

Out of fourteen completed energy projects, Port Qasim Power Plant, Quaid-e-Azam Solar
Park, and Sahiwal Coal-fired Power Plant among others stand as the most ambitious
projects in energy generation. The 1,320 MW Port Qasim Coal Power Plant equipped
with supercritical technology, has significantly contributed to Pakistan's energy
generation capacity. However, being a coal-fired power plant, it has also sparked
apprehensions about its environmental impact, particularly in terms of greenhouse gas
emissions. The 1320 MW China Hub Coal Power Plant, located in Balochistan, is
intended to generate 1,320 MW of electricity. The plant utilizes imported liquefied
natural gas (LNG) as its primary fuel source. This shift towards LNG-based power
generation reflects an effort to mitigate environmental impacts by reducing carbon

22
emissions compared to coal-fired plants. The Quaid-e-Azam Solar Park, located in
Bahawalpur, aims to capitalize on Pakistan's abundant solar resources. The Solar Park
generates a 400/600 MW of electricity via the use of reasonable solar energy having no
adverse impacts upon environment. Moreover, amidst the windswept plains of Jhimpir,
Sindh, a symphony of progress resonates through the Sachal Wind Power Project. As a
trailblazing endeavor under the ambitious China-Pakistan Economic Corridor (CPEC),
this project harnesses the untamed power of nature to illuminate Pakistan's energy
landscape. Embodied in the gentle caress of the wind, the Sachal Wind Power Project
emerges as a testament to the country's commitment to renewable energy and sustainable
development. While the Sachal Wind Farm produces 50 MW of power, UEP Wind Farm
adjacent to it produces about 100 MW of electricity. Another coal-fired energy project of
CPEC, 1320MW SSRL Thar Coal Block-I 7.8 mtpa & Power Plant (2×660MW)
(Shanghai Electric), lies in the vast expanses of Thar, Sindh, a transformative project as
Sino-Sindh Resource Private Limited (SSRL) embarks on a groundbreaking mining lease
in Block-I of the Thar coalfields. This endeavor, sanctioned on 24th September 2012, is
set to unfold an open-pit coal mine capable of producing 6.5 million tons per annum
(mtpa). Driven by the vision of sustainable energy, two state-of-the-art mine-mouth 2 x
330 MW power plants will harness the potential of indigenous lignite coal reserves. At
the heart of the China Pakistan Economic Corridor (CPEC) energy priority projects, this
initiative marks a milestone in Pakistan's journey towards energy independence.

 Under-completion Energy Projects:

884MW Suki Kinari Hydropower Project, KP, and, 300MW Coal-Fired Power Project at
Gwadar are the other major projects of CPEC according to the CPEC portal of
government of Pakistan which are under the phase of construction.

 Under-Consideration Energy Projects:

1124 MW of Kohala Hydropower Project, AJK, 1320 MW Thar Mine Mouth Oracle
Power Plant & surface mine, Cacho Wind Power Plant among others are the energy
23
projects which are under consideration to be included in the net of CPEC`s energy
projects.53

CPEC's energy projects present a complex interplay between development and climate
change. While coal-fired power plants have contributed significantly to meeting
Pakistan's energy demands, they have also posed environmental challenges due to their
greenhouse gas emissions. To strike a balance between development and environmental
sustainability, the inclusion of renewable energy projects like the Hub Power Plant and
Quaid-e-Azam Solar Park showcase a commitment to transitioning towards cleaner
energy alternatives.

CPEC's energy projects exemplify the intricate relationship between development and
climate change. While completed coal-fired plants have bolstered energy security, they
have also raised environmental alarms. On the other hand, the under-completed and
under-consideration projects demonstrate a conscious effort to embrace renewable energy
sources, such as LNG and hydropower, and solar energy, thereby aligning Pakistan with
the global transition towards sustainable development and climate change mitigation. It is
essential for Pakistan to continue exploring and implementing cleaner and greener energy
solutions to ensure a prosperous and sustainable future for the nation.54

These projects encompass a diverse range of energy sources, including coal, wind, and
hydro, with the common goal of addressing Pakistan's energy needs and driving
sustainable development. Nestled 15 kilometers northeast of Sahiwal in Punjab province,
the Sahiwal Coal Power Plant stands as a symbol of progress and energy transformation.
This mega project, sponsored by the esteemed Chinese company, Huaneng Shandong Rui
Group, promises to revolutionize power generation in the region. By employing cutting-
edge super-critical technology and utilizing sub-bituminous coal from Indonesia and
South Africa, the plant is set to generate a colossal 1,320 MW of electricity during its
initial phase, with even grander plans in the future.

53
Ministry of Planning, Development and Special Initiatives, Energy Projects under CPEC, accessed June
30, 2023, https://cpec.gov.pk/energy
54
SS Wasim, MK Sddiqi, Analysis of CPEC Projects, International Journal of Social Sciences, Humanities
and Education 2 (2018), 140-148.

24
3. The climate effects of CPEC's energy projects: A case study of
Sahiwal Coal-fired Power Plant

Bearing this aspect in mind, even if CPEC’s power projects will shorten the supply
demand gap of energy sources in Pakistan, these projects would also have quite harmful
and catastrophic impacts on environment for Pakistan in the long run. Recent heavy rains
and floods have shown that Pakistan is among the most effected countries of ecological
crisis and climate change. So, there are major concerns on global level for the carbon
emissions caused by coal-based energy production projects. While Pakistan has
associated high hopes, to reduce energy crisis, with CPEC, a transformation towards
coal-based energy production could cause serious long-term climate crisis for Pakistan
which is already vulnerable to climate crisis. The Global Climate Risk Index 2021 has
ranked Pakistan on eighth most vulnerable country to long-term climate risk.

A massive project within the China-Pakistan Economic Corridor (CPEC) in Pakistan, the
Sahiwal Coal Power Plant is intended to alleviate the nation's electricity shortage. The
project has, however, had a negative social and environmental impact on the
neighborhood's residents. Increased heat, flooding, and damage to agriculture, the
ecology, and the economy have all been brought on by the plant. Together with the
Pakistani government, China invested $1.8 billion to build the plant. The project moved
forward with insufficient regard for the local population or the environment, despite
warnings from earlier experiences in China when coal power plants caused deaths and air
pollution.

The coal power plant's sub-critical antiquated technology combined with low-quality coal
results in significant smoke generation and inefficient operation. The plant releases
dangerous poisonous substances like arsenic, mercury, and lead that pollute the soil and
water and endanger the health of the residents around.

Since the factory opened in 2017, locals have experienced negative health effects like
allergies and respiratory issues. Farmers who depend on this area for their livelihood have
suffered financial losses as a result of the harm done to the fertile agricultural land.
Additionally affecting soil fertility and crop quality is the pollution of canal water and the

25
release of harmful pollutants onto agricultural lands. An investigative piece published in
2019 in Dawn-English daily of Pakistan- brings about the details of horrific climate
sufferings of locals due to the operation of Sahiwal Coal-fired Power Plant. The report
reveals the story of a villager named Siddique along with other villagers who complain
about the prevalence of respiratory diseases and other smoke-related diseases from
Qadirabad, Sahiwal. Siddique owned 148 kanals (over 75,000 square meters) of
agricultural land and lived a peaceful life but now living in the shadows of coal plant he
struggles with his never-ending health issues. Most of the villagers complain about the
violation of land rights too. Since the government was too eager to go with the
completion of the project, the villagers of Qadirabad, Sahiwal were dispossessed of their
agricultural land. According to the report, the plant needs 60,000 cubic meters of water
daily while Pakistan remains a water-stressed country. This in turn had proved a
catastrophic development for the villagers too as they complain about the diminishing
threat of water levels.55

Environmentalists' and journalists' worries were disregarded, and the project was carried
out regardless of the dangers. Researchers have seen a drop in groundwater levels,
probably brought on by excessive pumping for the production of energy, which could
cause the aquifer to become contaminated with harmful substances like arsenic.

The social and environmental effects of Pakistan's Sahiwal Coal Power Plant highlight
the necessity of responsible and sustainable development. The project's contribution to
difficulties with air pollution, land degradation, and public health warrants immediate
government intervention. Emphasizing clean technologies and renewable energy sources
can lessen these negative effects while ensuring the nation's long-term gains. By taking
into account the long-term effects of such initiatives, the government should place a
higher priority on protecting the environment and the welfare of its population. For
Pakistan's long-term development and the wellbeing of its population as a whole, it is
essential to strike a balance between economic development and environmental
protection.

55
Syed Muhammad Abubakr, “Life Under the Shadow of a Coal-fired Power Plant”, December 15, 2019

26
This environmental concern needs to be addressed, and Pakistan's incoming
administration should give people-friendly policies first priority. In order to maintain
sustainable growth and protect the welfare of local populations, proper consideration
should be given to both macro and micro-level policies. To preserve both people and the
environment, it is crucial to draw lessons from the past and give ecologically friendly and
sustainable energy solutions first priority.

27
CHAPTER 4

4.1 Infrastructural Development under CPEC: an analysis of Trade


and Climate concerns

Infrastructural development under the China Pakistan Economic Corridor (CPEC) has
been a significant driver of economic growth and regional connectivity between China
and Pakistan over the past five years. This ambitious project, part of China's Belt and
Road Initiative (BRI), aims to enhance trade and energy cooperation while fostering
infrastructure development in Pakistan.

The construction of roads, railways, and ports under CPEC has undoubtedly improved
connectivity and reduced transportation costs for both countries. This has facilitated the
movement of goods, enabling Pakistan to access new markets and diversify its trade.
However, some concerns arise regarding the trade dynamics between the two nations, as
there is a growing trade imbalance in favor of China. Pakistan needs to ensure that CPEC
projects also focus on enhancing its export capabilities and industrial capacity to achieve
more balanced trade relations.

Moreover, the infrastructural development under CPEC raises climate concerns. The
construction of large-scale energy and transportation projects has the potential to impact
the environment adversely. It is crucial for both China and Pakistan to prioritize
sustainable and eco-friendly practices during project implementation. This includes
investing in renewable energy sources, implementing green technologies, and addressing
environmental safeguards to minimize ecological harm and ensure long-term
environmental sustainability.

To effectively address trade and climate concerns, both countries must collaborate to
establish transparent governance mechanisms, engage local communities in decision-
making processes, and conduct thorough environmental impact assessments. Through
such measures, the China Pakistan Economic Corridor can become a model of
sustainable development, promoting inclusive growth, and mitigating environmental
challenges for the region.

28
4.2 An analysis of Transport and Road projects under CPEC:

Under the China Pakistan Economic Corridor (CPEC), the development of transport and
road projects has been a cornerstone of the initiative's infrastructure-focused agenda.
These projects aim to enhance connectivity and facilitate the efficient movement of goods
and people between China and Pakistan, fostering economic growth and regional
integration. An analysis of the various completed, under-completion, and proposed
projects reveals the significant impact these initiatives have on both countries.

4.2.1 Types of Projects:

Transport and road projects under CPEC encompass a wide range of initiatives. Some of
these focus on road construction and upgrades, such as the Western Route of the CPEC
that involves the construction of new highways and the expansion of existing roads.
Railways also play a crucial role, with projects like the Main Line-1 (ML-1) upgrading
the railway network to facilitate the movement of goods and passengers across Pakistan.
In addition, there are plans for the development of industrial and special economic zones
along the corridor, creating an environment conducive to trade and investment.

4.2.2 Completed Projects:

Several crucial transport and road projects have been completed under CPEC, bolstering
Pakistan's infrastructure and trade capabilities. The most notable achievement is the
construction of the Karakoram Highway (KKH) upgrade, which has improved road
connectivity between the two nations. The Gwadar Port, a deep-sea port in southwestern
Pakistan, has also been completed, providing a strategic trade route for China and
offering Pakistan access to global markets. Additionally, the Lahore Orange Line Metro
Train, a mass transit project in Pakistan's second-largest city, has revolutionized urban
transportation and eased congestion.56

4.2.3 Under-Completion Projects:


56
N.G Abbasi., “Report of Technical Committee on Water Resources; Government of Pakistan”:
Islamabad, Pakistan, 2005.

29
Numerous ambitious transport and road projects are currently under construction,
showcasing the continued commitment of both countries to enhancing connectivity. The
Multan-Sukkur Motorway and the Karachi-Lahore Motorway are vital road networks that
will significantly reduce travel time and boost trade efficiency within Pakistan. The
Karachi Circular Railway, a modern urban transit system, aims to address Karachi's
traffic challenges and improve public transportation for millions of residents.

As with any mega-infrastructure project, challenges and concerns exist. Issues related to
land acquisition, environmental impact, and transparency in project management requires
close attention. Addressing these challenges and ensuring efficient implementation are
essential for the success of transport and road projects under CPEC. Through
collaboration and effective governance, the initiative can continue to drive economic
growth, regional integration, and sustainable development for both China and Pakistan.57

4.3 The Socio-Economic impacts of CPEC's infrastructural projects:

The China Pakistan Economic Corridor (CPEC) has had significant socio-economic
impacts on both China and Pakistan since its inception. The initiative's focus on
infrastructural projects has contributed to various social and economic changes, bringing
about opportunities and challenges for the people in both countries.

1. Employment Generation: CPEC's infrastructural development has led to a surge


in job opportunities in Pakistan. The construction of roads, ports, and power
plants has generated employment in the local communities, reducing
unemployment rates and improving livelihoods. Similarly, Chinese workers
involved in the projects have also found employment opportunities, boosting their
income levels.

2. Poverty Alleviation: By creating employment opportunities, CPEC has played a


role in alleviating poverty in certain regions of Pakistan. The income generated
from the projects has provided better access to basic necessities and improved the
overall standard of living for many households.

57
Renner Michael, “Water Challenges in Central-South Asia,” Noref Policy Brief no. 4 (2009): 1–10.

30
3. Regional Development: CPEC's projects are not limited to major cities; they also
target underdeveloped regions of Pakistan. The infrastructural development in
these areas has contributed to their economic growth, reducing regional disparities
and promoting inclusive development.

4. Industrial Development: The establishment of industrial and special economic


zones under CPEC has attracted foreign investment and promoted industrial
development in Pakistan. This has led to the growth of manufacturing industries,
enhancing Pakistan's export capacity and creating a conducive environment for
economic diversification.

5. Energy Security: Pakistan has long faced energy shortages, but CPEC's energy
projects have helped address this issue. The construction of power plants,
including coal, solar, and hydroelectric projects, has significantly increased
Pakistan's energy capacity, ensuring more stable and reliable energy supply.

6. Improved Connectivity: CPEC's infrastructure projects, such as the development


of roads, railways, and the Gwadar port, have improved connectivity within
Pakistan and with other countries in the region. This enhanced connectivity has
facilitated trade and investment, encouraging economic integration and
strengthening diplomatic ties.

7. Skills and Knowledge Transfer: Collaboration with Chinese companies has


allowed for skills and knowledge transfer to the local workforce in Pakistan.
Workers involved in the projects have had the opportunity to learn advanced
construction techniques and gain valuable experience, which can be applied to
future projects beyond CPEC.

Despite the positive impacts, CPEC's infrastructural projects have also raised some socio-
economic concerns that require attention:

31
1. Debt Burden: Some critics argue that the loans taken by Pakistan to finance
CPEC projects have led to a growing debt burden. The country must manage its
debt responsibly to ensure long-term economic sustainability.58

2. Environmental Impact: Large-scale infrastructure projects can have adverse


environmental effects. It is essential for both China and Pakistan to implement
eco-friendly practices and adhere to environmental regulations to mitigate
potential harm.

3. Inclusive Growth: While CPEC has brought progress, there is a need to ensure
that the benefits of development reach all segments of society. Efforts must be
made to address income inequality and ensure that marginalized communities also
reap the rewards of economic growth.

The socio-economic impacts of CPEC's infrastructural projects have been substantial,


ranging from employment generation and poverty alleviation to regional development
and improved connectivity. However, addressing the challenges of debt sustainability,
environmental impact, and inclusive growth will be vital in ensuring that the benefits of
CPEC are maximized for both China and Pakistan, leading to long-term, sustainable
socio-economic development.

4.4 Green House gas Emissions from Infrastructural Projects:

Greenhouse gas emissions from infrastructural projects have a significant impact on the
environment, with construction and operation processes contributing to carbon footprints
and resource consumption. It is crucial to address these emissions to promote
sustainability and combat climate change effectively.

1. Carbon Footprints: Construction activities in infrastructural projects release


substantial amounts of carbon dioxide (CO2) and other greenhouse gases into the
atmosphere. The manufacturing of construction materials, such as cement and
steel, is energy-intensive and produces emissions. Additionally, the use of heavy
machinery and transportation during construction leads to further emissions. Once

58
Ishrat Hussain, “The political economy of reforms: A case study of Pakistan,” Pakistan institute of
development economics, no. 10 (1999): 1-15.

32
operational, certain projects like power plants may continue emitting greenhouse
gases throughout their lifespan. Reducing carbon footprints requires adopting
low-carbon technologies, using eco-friendly construction materials, and
transitioning to renewable energy sources during the operational phase.

2. Resource Consumption: Infrastructural projects consume vast amounts of


resources, including water, raw materials, and energy. For instance, large-scale
construction projects may require significant amounts of water for concrete
mixing and other processes. Extracting and processing raw materials, such as sand
and gravel, also leads to resource depletion and environmental degradation. By
implementing sustainable construction practices, recycling materials, and
optimizing resource use, it is possible to reduce the environmental impact of
infrastructural projects.

3. Energy Consumption during Operation: Infrastructure, once operational, may


consume substantial amounts of energy. For example, transportation systems like
trains and buses require electricity or fossil fuels to function. Buildings and
industrial facilities use energy for heating, cooling, lighting, and other operations.
Minimizing energy consumption in these structures through energy-efficient
design, smart technologies, and renewable energy integration can significantly
reduce greenhouse gas emissions.

4. Emissions during Maintenance: The maintenance and upkeep of infrastructural


projects can also contribute to greenhouse gas emissions. Frequent inspections,
repairs, and replacement of parts for infrastructure like roads, bridges, and
pipelines involve various activities that may release emissions. Implementing
regular maintenance schedules, adopting sustainable maintenance practices, and
utilizing energy-efficient equipment can help mitigate emissions during this
phase.

To address greenhouse gas emissions from infrastructural projects effectively,


stakeholders must prioritize sustainable practices and consider the entire project lifecycle.
Adopting cleaner construction methods, reducing resource consumption, and promoting
energy-efficient technologies during operation and maintenance are essential steps.

33
Collaboration between governments, private sector entities, and environmental experts is
crucial to develop and implement strategies that support environmentally responsible
infrastructural development while contributing to global efforts to combat climate
change.

4.5 Carbon footprints and resource consumption associated with


construction and operation:

The China-Pakistan Economic Corridor (CPEC) is a massive infrastructure project aimed


at enhancing connectivity between China's western region and Pakistan's Gwadar Port. It
involves the construction of highways, railways, pipelines, power plants and other
infrastructure to facilitate trade and economic development. When considering the carbon
footprints and resource consumption associated with the construction and operation of
CPEC, several factors should be taken into account:

1. Construction Materials:
The construction of highways, railways, and other infrastructure requires vast
amounts of construction materials such as cement, steel, and other resources. The
extraction, production and transportation of these materials can lead to
greenhouse gas emissions and depletion of natural resources.
2. Energy Consumption:
The operation of power plants and other facilities within the CPEC project will
consume energy, and depending on the energy mix, this could result in varying
levels of carbon emissions. If the majority of energy comes from fossil fuel-based
sources, the carbon footprint would be higher.
3. Transport Emissions:
During the construction phase, there will be significant transportation of
materials, equipment, and personnel. The emissions from construction vehicles
and transport of materials can contribute to the overall carbon footprint.
4. Land Use and Deforestation:

34
CPEC involves the development of infrastructure across vast stretches of land,
which may lead to deforestation and habitat destruction, both of which have
environmental impacts.

5. Water Usage:
Some projects within CPEC may require substantial water usage, potentially
leading to water scarcity and environmental consequences.
6. Waste Generation:
Construction projects generate a considerable amount of waste. Proper waste
management and disposal are essential to minimize environmental impacts.
7. Efforts to curb environmental deterioration

It's important to note that the actual carbon footprints and resource consumption
figures would depend on various factors including the specific design, technology
used and the implementation of sustainable practices throughout the project.
Efforts can be made to reduce the environmental impact of the CPEC project.
There should be Emphasis on the use of sustainable construction materials and
techniques to reduce emissions and resource consumption. Incorporation of
renewable energy sources in power generation to decrease the carbon footprint is
necessary. Implementing effective waste management practices to reduce the
environmental impact of construction and operation is ultimate goal. Ensuring
proper environmental assessments and mitigation strategies are in place for each
component of the project. Adopting eco-friendly transportation options during
construction and operation phases is a healthy solution. 59

4.6 Impacts of CPEC infrastructural projects on the climate of


Pakistan:

1. Greenhouse Gas Emissions:


The construction and operation of power plants and industrial facilities within the
CPEC project may lead to increased greenhouse gas emissions particularly if

59
Syed Akbar Zaidi, Issues in Pakistan’s economy (Lahore: Oxford University Press, 2019), 25-30.

35
fossil fuels are the primary energy source. These emissions contribute to global
warming and climate change, which can have adverse effects on Pakistan's
weather patterns, water resources, agriculture, and natural ecosystems.
2. Deforestation and Land Use Change:
Infrastructure development for CPEC may require the clearing of forests and
other natural habitats. Deforestation contributes to increased carbon dioxide levels
and loss of biodiversity. It can also lead to soil erosion and negatively impact
local climate patterns, including rainfall and temperature.
3. Water Stress:
Some CPEC projects involve the construction of dams, power plants, and
industrial zones that can put additional stress on Pakistan's water resources.
Improper water management and increased water consumption in arid regions can
exacerbate water scarcity issues and disrupt local ecosystems.60
4. Air Pollution:
The use of construction equipment, transportation vehicles, and power generation
facilities can release pollutants into the air, contributing to air pollution and
affecting public health. Poor air quality can lead to respiratory problems and other
health issues for the local population.
5. Urban Heat Island Effect:
The concentration of infrastructure and industrial activities in specific areas can
create urban heat islands, where temperatures are higher than in surrounding rural
areas. This effect can worsen with increased urbanization and industrialization
impacting local climate and the well-being of residents.
6. Disruption of Wildlife:
Infrastructure development can lead to habitat fragmentation and disruption of
wildlife migration patterns. This can negatively impact local biodiversity and
ecosystems affecting species survival and ecological balance. To mitigate these
potential impacts and ensure the sustainable development of the CPEC projects, it
is crucial to implement comprehensive environmental impact assessments, follow
best practices in construction and operation and incorporate eco-friendly
60
Muhammad Hamza Sharif, "Water Shortages in Pakistan: The Urgency for Water Governance," Paradigm
Shift, August 21, 2021.

36
technologies and renewable energy sources. Additionally, adopting sustainable
land-use planning, promoting reforestation and forestation efforts and prioritizing
water conservation measures can help minimize the adverse effects on Pakistan's
climate and environment. Community involvement and public participation in
decision-making processes are also essential to address the concerns of local
communities and stakeholders.61
7. Soil Degradation:
The construction activities, improper waste disposal, and land-use changes
associated with CPEC projects can lead to soil degradation. Soil erosion and
contamination can reduce agricultural productivity and negatively affect
ecosystems.
8. Displacement of Communities:
Large-scale infrastructure projects may result in the displacement of local
communities, leading to social and economic disruptions. Displaced communities
may face challenges in adapting to new environments and accessing essential
resources potentially contributing to socio-environmental tensions.
9. Noise Pollution:
Construction and industrial activities can generate significant noise pollution,
impacting nearby communities and wildlife. Prolonged exposure to high noise
levels can have adverse effects on human health and disturb the natural behaviors
of animals.
10. Marine and Coastal Impacts:
CPEC's development also includes the expansion of Gwadar Port and associated
coastal infrastructure. Such developments can disrupt marine ecosystems, coastal
habitats and nesting sites of marine species affecting biodiversity and fisheries.
11. Energy Intensity:
The energy-intensive nature of some industries and power plants in CPEC
projects could lead to higher energy demand. If the majority of this energy comes
from non-renewable sources, it could exacerbate greenhouse gas emissions and
environmental impacts.
61
Kulsum Ahmed, “The downward spiral of the quality of life in Pakistan,” in Pakistan at Seventy, ed.
Shahid Javed Burki, Iftekhar Ahmad Chaudary and Asad Ejaz Butt (London: Routledge, 2019), 271-285.

37
12. Water Pollution:
Industrial activities and urbanization associated with CPEC projects may lead to
increased pollution of water bodies through the discharge of untreated wastewater
and industrial effluents, negatively affecting water quality and aquatic life.
Infrastructure development can result in the destruction or alteration of culturally
and historically significant sites impacting the region's cultural heritage and
identity.
13. Land Fragmentation:
The creation of new roads, railways, and industrial zones may lead to land
fragmentation, making it difficult for wildlife to move between habitats and
increasing the risk of biodiversity loss. While CPEC projects are intended to boost
economic development, they can also increase Pakistan's vulnerability to the
impacts of climate change. Changes in weather patterns, extreme events like
floods and droughts, and rising sea levels can have severe consequences for
infrastructure and communities.
4.7 Policy and governance of CPEC’s transport and road
infrastructure:
The policy and governance of CPEC's transport and road infrastructure are crucial
to ensure the successful implementation, efficient management and sustainable
development of these projects.
1. Bilateral Agreements:
CPEC is a result of bilateral agreements between China and Pakistan. The
governments of both countries are responsible for formulating and signing
agreements that outline the scope, objectives, funding and timelines of the
infrastructure projects including those related to transport and roads.
2. Institutional Framework:
The governance structure for CPEC typically includes the establishment of a
dedicated authority or body responsible for overseeing and coordinating the
implementation of the projects. This authority may be formed by the respective
governments or a joint committee involving representatives from both China and
Pakistan.

38
3. Long-term Planning:
Transport and road infrastructure projects often require long-term planning.
Comprehensive master plans are developed to identify the specific infrastructure
needs, project locations, and potential environmental and social impacts. These
plans aim to align the projects with broader economic development goals and
sustainability objectives.
4. Environmental and Social Impact Assessment (ESIA):
Before the initiation of any transport or road project, an Environmental and Social
Impact Assessment is typically conducted. This assessment evaluates the potential
environmental and social consequences of the projects and helps in identifying
mitigation measures to address adverse impacts.
5. Transparent Procurement:
Transparent and competitive procurement processes are essential to ensure the
selection of qualified contractors and suppliers for the construction and
maintenance of transport and road infrastructure. These processes help in
preventing corruption and ensuring that the best expertise is involved in the
projects.
6. Regulatory Compliance:
The governance framework should include clear regulatory guidelines and
standards for the design, construction, and operation of transport and road
infrastructure. Compliance with these regulations ensures that the projects meet
safety, quality, and environmental standards.
7. Public Consultation:
Engaging with local communities and stakeholders is crucial to address their
concerns, obtain feedback, and build a sense of ownership among the affected
populations. Public consultation processes help identify potential issues and allow
for the incorporation of local perspectives in project planning and
implementation.
8. Financial Management:

39
Robust financial management mechanisms are put in place to ensure effective
utilization of funds, cost control and timely disbursement of financial resources
for the projects.

9. Capacity Building:
Building local technical and managerial capacity is essential to ensure the
sustainability and proper operation of the transport and road infrastructure.
Training programs and knowledge transfer initiatives help in developing local
expertise.
10. Monitoring and Evaluation:
A robust monitoring and evaluation system is established to assess the progress
and impacts of the transport and road infrastructure projects continually. Regular
evaluation helps in identifying challenges and implementing corrective
measures.62

62
BIPP, Annual Report, Agriculture and Water, Lahore, 2017.

40
CHAPTER 5
The Way forward for Pakistan: Synthesizing Development with
Environment
The China Pakistan Economic Corridor (CPEC) is the mega project and it requires very
careful strategies and planning to make it environment friendly. CPEC should adopt
environment friendly sustainable policies. Moreover, these are the few major eco-friendly
and sustainable policies under the framework of CPEC. The authorities of the CPEC
should promote and implement various renewal energy projects. The renewal projects
such as wind, hydro and solar power. The CPEC authorities should establish various
renewal energy projects along the route of CPEC. The authorities should also provide
public and private investment opportunities in renewal energy projects and other
infrastructural and industrial projects. Secondly, use of advance and low carbon
technologies in transportation as well as for energy production (coal based) to promote
green transport and logistics and green energy. Under the framework of CPEC, the
responsible authorities should ensure the development of the sustainable infrastructure
which includes roads, building, water saving infrastructure, and developments of ports.
During the construction of these projects, the contractors and companies should use the
environment friendly material and building strategies and techniques. In addition to that,
biodiversity conservation is another important issue and it should be prioritize by the
CPEC authorities. The concerned authorities should conduct various environment impact
assessment (EIA) to discern out the obvious impacts of CPEC projects on environment,
biodiversity and wildlife. Under the banner of CPEC, the Pakistani government should
initiate multiple projects of forestation and reforestation, so that the construction of
CPEC projects should not destroy the forests and wildlife in forests. Additionally, as
there is no room for doubt that after the completion there will be flow of heavy traffic
which will cause land pollution as well as air pollution. Therefore, the governments of
both countries(China and Pakistan) should join hands to develop waste management
strategies at all levels which includes production, packing, transportation and selling.
These waste management strategies should use techniques like as recycling of waste and
waste to energy techniques. On the other hand, the authorities should also use various
technologies to control the air pollution by implementing advance and low carbon

41
emission technologies in construction as well as in transportation. Moreover, the
Pakistani government should raise awareness about the pollution and enforce carbon
taxing to regulate and to prevent the air pollution. The CPEC can also add projects related
to the water resource management which includes various sustainable water management
strategies such as the storing of rainwater and reuse of waste water and recycling and
purification of water released from various coal based power projects. Cooperation and
provision of facilitation to the local stakeholders and communities to make a sustainable
use of water. The projects under CPEC can also establish an environment monitoring
authority whose sole purpose would be monitoring of environment and impacts of
projects of CPEC on environment. By the same token, ensure the participation of local
communities in the monitoring processes. To make the CPEC more sustainable and
environment friendly, the concerned authorities of CPEC should work on capacity
building and engagement of stakeholders especially the local communities which get
affected by the projects of CPEC. These authorities should incorporate the opinions and
suggestions of the local communities in their decision making. Plus, the government and
the companies should provide essential training and expertise to local people.

SUSTAINABLE POLICIES:
Green financing as a policy to mitigate climate change in Pakistan:
Green financing is related to the products and services that a specially developed to
support the sustainable and environment friendly initiatives and projects. It means that
investing the capital in the projects and initiatives that have a positive impact on the
environment for example all the renewable energy projects which include wind power,
hydro power and solar power. Moreover, it also includes other projects such as the
sustainable irrigation, waste management and sustainable agriculture and eco-friendly
infrastructure. Implementation of green financing requires multiple stakeholders and
various significant steps. This paragraph includes a comprehensive road map or policy to
implement the green financing in Pakistan under the framework of CPEC. These are the
following key steps of the policy of green financing:

42
1. A regulatory framework for the policy:

To promote the green financing, the concerned governments and authorities should form
a detailed policy framework which will incentivizes many things such the tax incentives,
provision of various subsidies at various levels of projects, and provision of grants for
eco-friendly projects. Additionally, establishment of environmental standards for all
CPEC projects and also provide proper guidelines for the projects of CPEC. Make a
strong regulatory framework to implement the environmental standards and to ensure
transparency and accountability.

2. A capacity building and awarness:

Pakistan must initiate various initiatives of training and capacity building for all
stakeholders from financial institutions to local communities. So that it would increase
the understanding of the green financing. In addition to that, expand and spread the
awareness campaign among all stakeholders such as from investors to local communities
about the opportunities and benefits of the green financing. To master and access the
green financing mechanisms the CPEC authorities should collaborate with the
international institutions.

3. Green banking and financial products;

Support all banks and other financial bodies to establish the green financing departments.
Financial institutions should introduce various green grants and green loans specially
designed for the projects of CPEC. So that all the projects of CPEC should fulfill the
environmental standards and other requirements of the sustainability criteria. Under the
green banking they should also form the green credit assessment regulatory framework to
assess the social and environmental performance of the CPEC projects seeking green
financing.

4. Risk mitigation and insurance:

Establish risk management mechanisms and procedures to address the risk related with
the green projects which includes technologies risks and governance uncertainties. The

43
CPEC authorities should collaborate with the international financial institutions to get
their help in risk management.

5. Public private partnership:

To get support for the green financing for the projects of the CPEC, the authorities should
encourage the public-private partnership. Create various institutions, platforms and
procedures to facilitate the knowledge sharing among financial bodies, project developers
and government’s bodies as well as local communities and companies.

6. Reporting and disclosure:

There should be proper mechanism and standardized guidelines so that there should be
proper consistent reporting about the environmental performance of CPEC projects and
their sustainability. These projects should disclose their information related to the green
financing.

7. Green incentive investment:

The concerned authorities of the CPEC should provide various financial investment
incentives such as tax subsidies and tax exemptions, so that I will attract multiple
investments in green financing in CPEC projects. The authorities should also provide
various loans and bonds for innovative green projects. Create relations with international
financial banks to get loans and aid for CPEC projects.

8. International collaboration:

Cooperation and collaboration with international institutions is necessary, institutions


such as the WORLD BANK, ASIAN DEVELOPMENT BANK and GREEN CLIMATE
FUND to get their expertise, technical support and other financial funding to implement
the green financing within the framework of CPEC. Pakistan as a supporter of the green
financing should participate in the international forums and platforms to present
Pakistan’s potential and hard work, plus, top attract international green financial
investment in Pakistan.63
Nedopil, Christoph, and Hina Aslam (February 2023): “Green Financing Guidelines and
63

Framework for China Pakistan Economic Corridor (CPEC) - Baseline research paper”, GFDC
FISF Fudan University, SDPI and PCI, Shanghai and Islamabad

44
Environment protection measures in the coal based power plants:

Companies generating electricity from the coal must use and implement the following
environmental protection measures to prevent pollution especially the air pollution and to
ensure the environment friendly functioning of the coal-based power plant.

1. Dust Control Measures: (Air Pollution Control)

There is a technology (device) known as the electrostatic precipitator (ESPs), this


technology uses an electric charge to remove the various impurities, solid small objects
and liquid droplets from gases in smokestacks and other flues. The fujanlongking co. Ltd
(CHINESE ORIGIN) has introduced a horizontal electrostatic precipitator for the coal
based fire boilers. These horizontal electrostatic precipitators use DC filed to make the
dust particles electrically charged. During this mechanism, these dust particles and other
impurities get collected in the collection plates. In the second phase of the process, the
dust particles fall into the dust storage box or device. The process of second phase is
regulated by the actions of rapping device. In the next stage, with the help of conveying
system these impurities are transported to the ash \silo so that these impurities get
purified through ESPs.

2. Sox control measures:

Flue gas desulfurization system (FGD) is a set of technologies which are used to remove
sulfur dioxide from exhaust flue gases of coal-based power plants. After passing through
the process of electrostatic precipitators the flue gases enter into the flue gas
desulfurization system. Those flue gases directly flow into the absorb er. In the absorb er,
the limestone slurry is sprayed to the flue gases from top to bottom. While at the same
time, these flue gases flow from bottom to top. This process initiates a sort of chemical
reaction between the flue gases and limestone slurry in the absorber. Through this
mechanism, more than 90 percent of the SOX are removed from the flue gases. During
this process, the limestone slurry is act as the absorbent that removes the SOX from the
gases. In the final stage it is released to the outer atmosphere through the clean ducts of
FGD system. Gases released from the chimney contain SOX concentration within the
limits of NATIONAL ENVIRONMENTAL QUALITY STANDARDS (NEQS).

45
3. Wastewater treatment facilities:

All the wastewater treatment facilities are used according to the guidelines of the
National Environmental Quality Standards (NEQS). The industrial wastewater includes
both regular and irregular wastewater. The regular and irregular wastewater will be
collected separately and treated on the sities. These treated waters will be reused in
various purposes.

4. Ash yard facilities:

According to the environmental impact assessment approval, Pakistan does not have any
seepage and permeability control measures. Therefore, the Chinese companies should
design ash yards according to the Chinese Standards. Ash fields lying of polyethylene
Geo-membrane of the design to have the equivalent permeability of 1.0&10 7cm/s and
1.5M thick clay to control seepage.

5. Coal yard facilities:

Sprinkle water system should be installed on the top of the pile of the coal to keep the
surface moisture and to prevent the coal dust. Secondly, wind dust controlling nets
around the pile of coal in the yards.

6. Tree plantations:

The companies operating the coal-based power projects should initiate various tree
plantation schemes in the concerned areas and regions to prevent the ecological
degradation of that region.64

B. Carbon taxing: what, why, and how?

 WHAT IS CARBAON TAXING?

Carbon taxing is the taxing policy used by states to reduce the carbon emissions, through
taxing, these CFCs are major contributors of the climate change and global warming.

Zia, Muhammad & Waqar, Shujaa. (2018). Sahiwal Coal Power Plant "Exploring Employment
64

and Environmental Effects" An Early Harvest Project of CPEC.

46
This policy of carbon taxing imposes a certain financial amount on the carbon content of
fossil fuels and all other activities that release certain amount of the CO2. The
fundamental mechanism behind this idea is to make the emission of CO2 extravagant.
While on the other hand, states incentivize businesses to prevent and reduce the carbon
emissions and offering safer and cleaner alternatives. Through the policy of carbon
taxing states are making the use of fossil fuels expensive and this policy supports and
fosters the adoption of the safer, cleaner and renewal energy resources. Interestingly,
there are several countries that have implemented of announced various carbon taxing
plans in their countries. Here are the few examples of countries that have implemented
the carbon taxing policy in their respective states.

1. FINLAND:
Finland announced its carbon taxing policy in 1990s. Their policy of carbon taxing
covers multiple areas such as the energy production, transportation, and other heavy
industry.
2. NORWAY:
Norway has implemented the carbon taxing policy. In addition to that they also have
implemented a separate carbon taxing system known as the emission trading system for
limited number of industries.
3. FRANCE:
During 2014 France announced its carbon taxing policy and implemented its CT policy.
However, the implementation of this carbon taxing policy had initiated a countrywide
protest. As a result of which the policy was reversed in 2019. The government of France
has expressed its intentions to re implement its carbon taxing policy.
4. NEW ZELAND AND SOUTH AFRICA:
New Zealand implemented its carbon taxing policy in 2008. The tax was particularly on
the industry and energy sector. Moreover, South Africa had also announced it carbon
taxing policy in 2019. The aim of this policy is to reduce the carbon emissions and
transition towards the safer and cleaner and low carbon emission state.
PAKISTAN AND CARBON TAXING

47
There is no room for doubt that Pakistan is already a climate vulnerable state and climate
change has become a security existential threat to Pakistan. Therefore, Pakistan can also
use carbon taxing as a policy to reduce the carbon emissions. There are several coal based
power projects initiated under the flagship project of CPEC which has enough potential
to produce CO2. therefore, in the upcoming future Pakistan must consider the
implementation of the carbon taxing in its industrial and energy sector to make a
transition towards the eco-friendly and sustainable state.

VARIOUS ENERGY MODELDS FOR PAKISTAN THEIR EMISSIONS:

According to a research done by the MDPI (multidisciplinary digital publishing Institute)


and this research analyzed various energy models for Pakistan which includes the
following 1. BAU (Business as usual) RE 30(30%), RE 40 (40%), COAL 30 (30%),
COAL 40 (40%). the research identified that COAL30 AND COAL 40 will cause
maximum CO2 emissions. For example, 260 MT (MILLION TONS) and 338 MT
respectively. While on the other hand, RE40 (RENEWABLE ENERGY) and RE30 has
lesser amount of CO2 emissions. For example, they have the emissions of 96 MT and
11.1 MT. Therefore, it is identified that coal based generation of electricity would be a
huge contributor of the CO2 emissions. Consequentially, it will cause huge air pollution.
So the Pakistani state should move towards the renewal energy resources to prevent
environmental degradation and protect public from the health risks.

Complete implementation of the national climate change policy in Pakistan:

The national climate change policy is the comprehensive document that addresses all the
challenges and threats posed by the climate change. This detailed document also
suggests all sorts of adaptations and mitigation policies in response to climate change.
Moreover, the national climate change policy includes all sectors and areas of the state
which includes recommendations for the sustainable water resource management,
suggestions for sustainable agriculture, livestock, forestry and biodiversity. In addition to
that, it also suggests sustainable policies for the glaciers, mountain lands, pastures, costal
lands and other wet lands. Most importantly, the document of NCCP also provides eco-
friendly policy options for energy efficiency and energy conservation, transportation, and
town planning. Interestingly, it also suggests procedures and mechanisms of the disaster

48
preparedness. Additionally, the NCCP document includes policies for the capacity
building and strengthening of the regulating institutions. Moreover, it has provided
strategy for the raising of awareness about the both benefits and opportunities of green
financing. While, on the other hand, raising awareness about the destructive impacts of
climate change,

Why green energy?

Green energy is eco-friendly, sustainable, and long-lasting. Most importantly, it does not
have the adverse impacts on the eco-system. It an established fact that Pakistan is going
to be a commercial hub, once CPEC is fully operational. As a result, it will attract
business to Pakistan. These are the following advantages that can be achieved by
switching by switching to renewable energy.

a. It will multiply the power generation capacity of Pakistan.


b. By promoting green energy Pakistan can enhance its energy security.
c. Diversified local energy sources will help Pakistan to reduce its dependence on
energy imports.
d. Domestically produced green energy will solve up to 50% problems related to the
balance of payments.
e. The diversified green energy projects will attract national and international private
investment.65

Policy options:

1. Pakistan is a developing country and it has no capacity (financial and


technological) to engage in a mega energy project. Therefore, government should
promote the idea of public private partnership. This will provide an opportunity to
investors to invest their capital in green energy ventures.
2. To initiate green energy government can contact international organization like
REEP, IRENA and GEEREF for a greener future. Those enterprises can provide
funds along with technical guidance.

65
Duan, Wenqi, Adnan Khurshid, Naila Nazir, Khalid Khan, and Adrian Cantemir Calin. "From gray to
green: Energy crises and the role of CPEC." Renewable Energy 190 (2022): 188-207.

49
3. The government should initiate various initiative and campaigns to make people
aware about the benefits and opportunities of green energy. Plus, also start
campaign to make people aware about the adverse effects of fossil fuels based
energy.
4. The government should improve transmission infrastructure to make it more
efficient and sound in transmission.66

The farmers of Pakistan should install solar based pumps and tube wells with the help to
government

66
Ibid., 47-49.

50
67

67
Ibid.,

51
Case study 0f Major Energy Projects in the Asia-Pacific Region

Importance of these projects:

Production of energy is increasing in the Asia and Pacific regions of the world.
According to this report, by 2030, Asia-Pacific region will produce 56% of the world’s
energy. A new mega initiative of the energy project continues to carry the growth to
fulfill the soaring demand of huge population. Here is the list of few major energy biggest
projects that are going to play a major role in the energy production in the region. Green
financing has been focused on wind, hydropower and solar energy. Moreover, this region
is in the leading position in the production of Lithium ion batteries. It is a growing market
and China holds 79% share in it. The upcoming years are crucial as region tries to reduce
their dependence on fossil fuels.68

5- Major projects in the Asia-Pacific Region:

a) Ubol Ratana Dam Hydro Floating Solar Hybrid Project, Thailand:

The government of Thailand is constructing a mega energy project to create 6


floating solar farms which have the joint capacity of 2.7 GW by 2037. Currently,
these solar farms are installed in Sirind horn dam. Furthermore, this project
combines hydro-power, solar power, and energy storage facility. In the current
scenario, Thailand has the clean energy capacity of 12 GW. By 2050, Thailand
will declare itself a carbon neutral state.

b) Maclntyre Wind Precinct, Australia:


Maclntyre wind renewable energy facility is an onshore wind complex which has
the capacity to generate 1GW energy. This RE (renewable energy) project is
world’s largest onshore wind project. Through this project Australia will meet its
targets of de-carbonization plus fulfill the Climate change mitigation policies. In
addition to that it will also construct 65Km long transmission lines.

68
‘’Major energy projects in the Asia-Pacific region,’’ Petroplan, 06 Feb, 2023, http://ww.petroplan.com.

52
c) Australia-Asia Power link, Singapore and Australia:
The Asia-Australia power link project is an energy infrastructure project. This
project is going to be functional in 2026. This intercontinental power transmission
project will carry electricity from Australia to Singapore through world longest
submarine power transmission lines. According to this report, this project will
fulfill 15% electricity demand of Singapore. Further, they are also making Plans
to include Indonesia in this project.
d) Kapar CCGT Power Plant, Malaysia:
The Kapar plant will use gas turbine to generate electricity, and the waste heat
will be passing to nearby steam turbine that will produce more electricity. The
Kapar power plant has the capacity to generate 2.1GW electricity. The cost of
Kapar power project is nearly 2 billion dollars. Moreover, this power project has
the capacity to produce thousands of jobs in the renewable sector.
e) Sarulla Geothermal Power Generation Project, Indonesia:
Indonesia has multiple active volcanoes with considerable amount of geothermal
energy. In fact, Indonesia has the world’s 40% geothermal energy reserves. The
Indonesian government is going to construct the 330MW Sarulla geothermal
power production project. This project was completed in 2018 and it has
generated around 1800 geothermal jobs for Indonesian citizens. This project is the
one of the largest geothermal power projects in the world.

53
CONCLUSION:

Pakistan is facing serious challenge of Climate change and it has badly impacted the
agriculture sector, economic production, human settlements, and biodiversity in Pakistan.
Concurrently, CPEC is investing huge amount of investment in Pakistan, opening new
avenues and opportunities for the growth and economic prosperity of Pakistan. However,
without integrating the climate related concerns in the CPEC projects the will further
exacerbate the already vulnerable state and it will trigger the environmental degradation
in Pakistan. The projects related to the infrastructure and energy under the CPEC need an
environmental impact assessment to minimize their impacts on the ecology of Pakistan.
Moreover, Pakistan, therefore, invest in renewable energy and sustainable developmental
projects to make itself Climate resilient and greener. All the projects of CPEC must
incorporate and follow climate resilient policies to keep their carbon emissions at a
minimum level. Pakistan needs to prioritize its environment and incorporate the
environmental protection measures in the strategies of CPEC. Finally, the state of
Pakistan must implement the National Climate change policy to protect the environment
of Pakistan.

54
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